Insurance and Claims Operating Fund

Source: PDF pp. 1028-1029 ↗ · raw: 1028 · 1029

Breadcrumb: Fund Summaries > City Administrator. . > Insurance and Claims Operating Fund

City of Portland Fiscal Year 2026-27 Proposed Budget City Administrator> Insurance and Claims Operating Fund Insurance and Claims Operating Fund Fund Summary 2024-25 Actuals 2023-24 Actuals 2025-26 Revised Budget 2026-27 Proposed Expense $47,373,808 $46,186,967 $48,062,761 $44,144,691 Bureau Expense $26,083,995 $19,863,023 $33,948,026 $22,545,920 Fund Expense $585,106 $513,248 $14,114,735 $21,598,771 Contingency $0 $0 $13,466,124 $20,894,203 Debt Service $131,295 $126,243 $136,547 $141,998 Fund Transfers - $453,811 $387,005 $512,064 $562,570 Expense Unappropriated $20,704,707 $25,810,696 $0 $0 Ending Fund Balance $20,704,707 $25,810,696 $0 $0 Revenue $47,373,808 $46,186,966 $48,062,761 $44,144,691 External Revenues $1,057,047 $895,418 $880,081 $1,073,683 Miscellaneous $1,057,047 $895,418 $880,081 $1,073,683 Internal Revenues $46,316,761 $45,291,548 $47,182,680 $43,071,008 Beginning Fund $25,810,696 $28,108,884 $20,380,966 $14,750,825 Balance Fund Transfers - $700,000 $0 $3,250,000 $2,125,000 Revenue Interagency Revenue $19,806,065 $17,182,664 $23,551,714 $26,195,183 Fund Overview The Insurance and Claims Operating Fund provides tort, general liability, and fleet liability claims administration; management of the liability self-insurance program; management of the City’s commercial insurance portfolio, including cybersecurity insurance; and Citywide leadership in loss prevention. Fund expenditures are primarily for claims-related payments. Projected claims are based on an independent actuarial study, which includes a projection for the current fiscal year and for the next five years. The reserve requirement is based on the actuarial study, which recommends a range for the reserve levels needed to cover outstanding incurred liabilities. The range is produced by calculating reserves at various confidence levels (i.e., the probability that actual losses will not exceed the reserve level). Reserves are stated at a discounted level, which takes into account the interest the fund earns on the fund balance. The Insurance and Claims Operating Fund reserves are forecasted at a discounted confidence level of 80%. Interagency revenues are projected on a five-year basis so that, by year five, the fund will achieve the required claims reserve forecasted for the fifth year by the actuary. This five-year smoothing of interagency rates is designed to mitigate large fluctuations in rates from year to year. 1028

City of Portland Fiscal Year 2026-27 Proposed Budget Risk expanded core activities to include provision of risk assessments and risk registers, injection of collaborative loss prevention activities, and increased risk identification materials and data output from the Risk Management Information System. Managing Agency Office of the Chief Financial Officer Significant Changes from Prior Year The fund has no significant changes from the prior year. 1029

Parent: City Administrator. . · PDF: pp. 1028-1029 ↗